August 3, 2010 / 1:19 PM / 10 years ago

STOCKS NEWS EUROPE-Petrofac weak; technicals weigh

Shares in Petrofac (PFC.L) shed 1.6 percent with technical factors weighing on the blue chip oil services firm, leading Galvan Research to see a short term sell opportunity in the stock.

“In spite of the “on track” June trading update and subsequent contract wins the shares have failed to make further significant headway above 1,350 pence,” says Andrew Gibson, head of eesearch at Galvan.

On this basis, Galvan believes Petrofac shares are high enough for now, offering a short term short sell opportunity until further fundamental drivers emerge.

“Shares in Petrofac have been in a rising trend channel in place on the daily chart since March. The resistance line of this channel currently runs through 1,380 pence and while below this the expectation is for a test of the last bear trap intraday low of 1,241 pence from last month,” Gibson says.

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